ABSTRACT
To summarise, in establishing prices for their services, HEIs must take account of the four elements of the marketing mix and ensure that they are properly coordinated with each other.
Although costs should be only one component of an effective pricing strategy, within HE the costs (however calculated) of a service have traditionally been the main determinant of its price. Basing pricing strategy decisions largely on the cost of provision implies an inward-looking organisation as pricing decisions also require an external perspective. Thus while HEIs may now have an improved understanding of their costs, to improve their pricing decisions many need to substantially improve their access to and understanding of market information. This means improving information on both customer needs and competitors.
